Trump's tariffs reveal China's power in the pharmaceutical industry

Trump's tariffs reveal China's power in the pharmaceutical industry

In the USA,

The dependence of the USA on amoxicillin

This dependency is particularly worrying, since US President Donald Trump , which means that America's susceptibility to critical drug deliveries from abroad is brought into the spotlight. Rick Jackson, founder and CEO of Jackson Healthcare, whose company is the only amoxicillin manufacturer in the USA, commented on: "Rising trade conflicts or longer clashes could impair our access to amoxicillin or required ingredients if Beijing uses its supply chain power as a weapon."

pharmaceutical imports and security concerns

Despite the widespread knowledge of America's strong dependence on Chinese pharmaceuticals, there are only a few comprehensive data on the full extent of this dependency in the sector, since large pharmaceutical companies have little incentive to disclose such information. This is one of the reasons why the Trump administration last month is a Investigation initiated, as part of experiments, to impose tariffs to the sector for national security reasons.

China's role in the global pharmaceutical industry

china produces 80% of the global raw materials for amoxicillin and thus shows how vulnerable the world can be towards "Chinese political or economic moods". Jackson said: "Every interruption of China along the long amoxicillin supply chain could be catastrophic, especially with regard to a potential bacterial epidemic." The purchase of a bankruptcy in Tennessee by Jackson in 2021 to produce amoxicillin illustrates the need to strengthen domestic production.

slow progress and long -term consequences

The progress in building a robust pharmaceutical supply chain in the USA has so far been slow. Trump argued that pharmaceutical companies "had to produce in the United States or to be expected to have a customs wall". His goal is to bring production back into the country. According to a study from 2021, the USA imports 72% of its Vital drugs . However, experts agree that customs duties would do little to bring back generic production into the country.

China's strategic advantages and effects on India

China's strategic position in the global supply chain. 70% of Indian API imports come from China. Dinesh Thakur, a health expert, found that India's dependence on China for drug materials reflects the "natural evolution" of the industry, as an Indian company, increasingly switched to higher -quality products, while China's pharmaceutical industry was able to lower.

Conclusion: Necessity of alternative measures

incentives beyond tariffs are required to create a resistant pharmaceutical supply chain. Experts warn that disruptions in the supply of drugs could have catastrophic consequences for public health. "People's lives depend on any of these medication," said Ronald Piervincenzi, CEO of the USP. A deficiency could lead to necessary treatments such as therapies for cancer patients. Such a situation is not just an economic, but above all a human disaster.